What is a contingent offer in real estate?

A contingent offer in real estate refers specifically to an offer to purchase that is dependent on certain conditions being met. This type of offer includes specific stipulations that must be satisfied for the transaction to move forward. Common contingencies might include the buyer obtaining financing, the sale of their current home, or satisfactory inspections of the property.

This framework provides protection for buyers, allowing them to back out of the agreement without penalty if the agreed-upon conditions aren't fulfilled. By including these contingencies, the buyer can negotiate terms that align with their particular situation, making it a strategic aspect of the purchasing process in real estate transactions.

In contrast, offers without conditions are unconditional, while the ability to revoke an offer or immediate acceptance regardless of conditions does not describe the concept accurately and misses the essence of a contingent offer's purpose in real estate negotiations.